Enterprise in capital markets presents a number of risks and challenges including lack of access to formal finance to sustain businesses and insurance to protect against losses. This is because low-income business owners do not have the funds to participate in the formal capital markets or insurance sectors or if they do, they are classified as high risk and are penalized with higher interest rates. Starting in the late 1960s, microfinance as a service has become a viable alternative for low-income business owners to protect themselves against shocks while operating their businesses. Microinsurance has also become an invaluable tool to help the poor who disproportionally face greater risks from perils like sudden death of a family member, poor health and environmental dangers like fires and floods to mitigate risks as they operate their businesses.
This capstone project is a full stack development tool to educate the public about inclusive financial services like microfinance and microinsurance.
The project was inspired by published research the primary investigator conducted with entrepreneurs in developing countries while enrolled as an undergraduate in Economics
and conversations about microinsurance the researcher conducted because microinsurance is a type of low-cost insurance designed for low-income individuals .